• Register
Return to: Home > News > ACCA study reveals 55% of public misunderstand audit

ACCA study reveals 55% of public misunderstand audit

A research study conducted by the Association of Chartered Certified Accountants (ACCA) has revealed that 55% of the public believe auditors could prevent company failures.

In addition 34% of the respondents said they expected auditors to always detect and report any fraud and 70% believed audit should evolve to prevent company failures.

The study surveyed 11,000 respondents in 11 different countries regarding the expectation gap in audit.

When asked to define the role of an auditor, 48% of respondents from Greece were able to do so, followed by the Czech Republic with 47%. Only 25% of UK of respondents answered correctly.

The survey was conducted in association with Chartered Accountants Australia and New Zealand (CAANZ) and was conducted at a time where the UK audit sector underwent a number of reviews, including scrutiny of both the role and remit of its soon-to-be reformed regulator, The Financial Reporting Council (FRC).

The Business Energy and Industrial Skills report on the future of audit also identified a ‘delivery gap’ in audit. ACCA believes this gap is the most relevant issue facing the profession and should be assessed in three components: the knowledge gap, the performance gap and the evolution gap.

ACCA executive director of governance, Maggie McGhee, said: “ACCA’s survey highlights challenges for the accountancy profession, regulators and government in how to respond to public expectations of audit.

“The profession has long spoken about the expectation gap in audit, and our research highlights the failure of the gap to close. Globally, it is clear that further education on the auditor’s role is required, backed by a proactive approach from the profession to address public concern.”

ACCA audit and business law manager Antonis Diolas said: “There has been significant scrutiny in the UK around audit.

“Our research shows the urgent need for an open dialogue involving the profession, stakeholders and the public to understand what kind of audit future the public expects.

“Our data shows the high levels of misconception, and that the public are telling us they see audit is part of the solution, a robust audit sector exercising the appropriate levels of professional scepticism. We must work together to address their legitimate concerns about audit.” 

 

By Asena Degirmenci 

Top Content

    HONG KONG NATIONALS: UNDERSTANDING VISA AND TAX WHEN MOVING TO THE UK

    Over 2 million Hong Kongers learned recently that they may soon be offered a route to UK citizenship following China’s introduction at the end of June of its controversial Security Law in the territory.

    read more

    SASB IMPLEMENTATION SERIES: COMMUNICATING ESG TO MAINSTREAM INVESTORS

    As part of a series of webinars, the Sustainability Accounting Standards Board (SASB) took a closer look at how to communicate ESG initiatives and progress to mainstream investors

    read more

    REPORTING AND COMPLIANCE: WHY WE NEED A DATA REVOLUTION

    Commerce no longer adheres to national boundaries: the largest international organisations to the smallest businesses operate in a global market. However, rules for corporate reporting and compliance do adhere to borders, write IMA’s Jeff Thomson and Liv A Watson

    read more

    CORONAVIRUS TIMELINE: REACTIONS FROM THE ACCOUNTANCY PROFESSION

    As the Coronavirus (COVID-19) continues to spread across the world, the International Accounting Bulletin and The Accountant will be collating all the latest news and updates from the profession on the pandemic’s impact.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.